India Seizes Embattled Yes Bank After Capital Raising Plans Fail

India’s stock and currency markets tumbled after the central bank seized control of beleaguered Yes Bank Ltd., raising concerns about the knock-on effects on the financial system.

The Reserve Bank of India capped withdrawals at 50,000 rupees ($682) and imposed strict limits on operations at the country’s fourth-largest private lender, while a rescue plan is devised. In a statement late on Thursday, the regulator said it was forced to step in after Yes Bank’s latest effort to raise new capital failed to materialize and as the lender “was facing regular outflow of liquidity.”

Yes Bank shares fell as much ...